Morning Commentary: Palo Alto Networks convertibles in focus; sector peer FireEye gains

By Stephanie N. Rotondo

Seattle, Nov. 4 – Palo Alto Networks Inc.’s 0% convertible notes due 2019 were trading actively early Friday, as investors reacted positively to fresh earnings news out of the computer security sector.

A trader said the convertibles were trading around 145. The equity (NYSE: PANW) was up $3.13, or 2.11%, at $148.73.

The activity in the name came as sector peer FireEye Inc. reported a narrower loss of 16 cents per share. That compared to a loss of 37 cents a share the year before.

Revenue meantime grew 13% to $186.4 million.

Analysts had expected a loss of 31 cents per share on revenue of $182.6 million.

FireEye’s 1.625% convertible notes due 2035 were not overly active but were trending higher, adding 0.5 point to 1 point to trade in a 90 to 90.5 context, according to a market source. The company’s equity (Nasdaq: FEYE) was among the day’s biggest percentage gainers, rising $1.86, or 16.88%, to $12.87 at mid-morning.

For its part, Palo Alto is slated to release its latest quarterly results on Nov. 21.

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